The crypto industry is now looking to federal regulators for guidance after the Senate failed to advance the Clarity Act. Within days, the SEC, CFTC, and Federal Reserve unveiled new rules and proposals, shifting the focus from legislative clarity to agency rulemaking.
The shift from congressional legislation to agency rulemaking means the crypto industry faces a slower, more fragmented, and potentially less stable regulatory environment, increasing compliance uncertainty and legal risks.
The crypto industry's long-standing strategy to achieve regulatory clarity through a comprehensive market-structure law in Congress has hit a significant roadblock. The Senate's failure to advance the Clarity Act, a bill that had been in development for over a year, has shifted the industry's focus to federal regulators.
Within 48 hours of the Clarity Act's demise, several key agencies moved to establish their own frameworks. The Securities and Exchange Commission (SEC), under Chairman Paul Atkins, introduced an "innovation exemption" that allows qualifying venues to trade tokenized U.S. stocks on-chain without needing to register as national securities exchanges. This move signals the SEC's intent to set crypto policy through its existing authority.
The Commodity Futures Trading Commission (CFTC) also took action, with its staff issuing a no-action position for passive software providers, such as crypto wallet apps, enabling them to offer access to regulated derivatives without registering as introducing brokers. Additionally, the CFTC has sent a broader crypto-market rulemaking to the White House for review.
The Federal Reserve proposed new rules for stablecoin issuers, requiring them to fully back their tokens with safe, liquid assets and maintain capital against operational risks. This proposal is part of the multi-agency rollout of the GENIUS Act, a stablecoin law signed in 2025. The Office of the Comptroller of the Currency (OCC) is also working to finalize its own stablecoin rules ahead of a January deadline.
While industry figures, such as Solana Policy Institute President Kristin Smith, have embraced this regulatory path as more viable for the time being, they acknowledge that agency rulemaking is a slower process, more susceptible to legal challenges, and easier for future administrations to alter compared to legislation. This contrasts with the previous "regulation by enforcement" approach seen under the SEC during the Joe Biden administration, which had been a source of concern for crypto executives.
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